EURUSD: While a reversal ahead of its key support residing at the 1.3738 level, its Mar 19’09 high has now stalled, EUR now sees threats of further corrective declines as long as it is trading within its ST falling channel. The above mentioned support will be targeted on lower prices where we still expect a cap to turn the pair higher to preserve its medium term uptrend. However, on a violation of there, risks of further weakness will shape towards its daily 200 emaat 1.3548 level. To the topside, resistance lies at the 1.4000 level, its psycho level with a turn above there putting the 1.4338 level, its 2009 high under pressure. Beyond there will activate the resumption of its medium term uptrend and clear the way for a run at the 1.4718 level, its Dec 18’08 high ahead of the 1.4864 level, its Sept 22’08 high. On the whole, though biased to the upside in the medium term, EUR continues to experience corrective price activities in the nearer term.

Support Comments

1.3805 Jun’09 low

1.3738 Mar 19’09 high

1.3548 Daily 200 ema

Resistance Comments
1.4267 Jun 05’09 high

1.4363 Jun 2’09 high

1.4718 Dec 18’08 high

GBPUSD: Correcting With Upside Bias.

GBPUSD: Hesitation continues to be seen in the pair’s price action finding it tough to have a clear directional moves in the nearer term. While that continues to play out, corrective to resumption of its medium term uptrend is envisaged. Resistance starts at its 2009 high at 1.6662 where a break will clear the way for the resumption of its medium term uptrend towards the 1.7000 level, its psycho level. This view is consistent with its medium term outlook which is pointing higher. Downside objective begins at the 1.6209 level, its minor support where a violation will leave the pair targeting further lower prices towards the 1.6000 level, its psycho level ahead of another strong support standing at the 1.5801 level, its Jun 08’09 low. We envisage that a cap at these levels should turn the pair back higher again if tested but if a failure of that zone occurs, scope for further price declines will turn towards its daily 200 emacurrently at 1.5578. Its daily studies are supportive of this view as they are heading lower. Allin all, though presently undergoing corrective price activities in the nearer term, GBP remains biased to the upside in the medium term.

Support Comments

1.6209 Jun 16’09 low

1.6085 May 27’09 high

1.6000 Psycho level

Resistance Comments

1.6398 Nov 03’09 high

1.6662 2009 high

1.7000 Psycho level